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Space and Environment

  • P-ISSN1225-6706
  • E-ISSN2733-4295
  • KCI

ISSN : 1225-6706

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Vol.31 No.3

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Social Capital and Cross-border Small-Scale Trade Networks on the “Central Asia Street” in Seoul

Space and Environment / Space and Environment, (P)1225-6706; (E)2733-4295
2021, v.31 no.3, pp.338-370
https://doi.org/10.19097/kaser.2021.31.3.338

(2021). Social Capital and Cross-border Small-Scale Trade Networks on the “Central Asia Street” in Seoul. Space and Environment, 31(3), 338-370, https://doi.org/10.19097/kaser.2021.31.3.338

Abstract

This paper explores the case study of the “Central Asian Street” in Seoul to investigate how cross-border small-scale trade still operates in the district. This paper evolved from two primary questions: ①Why do traders prefer cross-border small-scale trading over the distribution services available to them, including wholesale and transportation companies, which are ubiquitous; and ②What are the economic benefits that traders receive through cross-border small-scale trading? Through the conduct of fieldwork and in-depth interviews, I focused on two main activities that traders engaged in: face-to-face contact with wholesalers and retailers and the personal transit of goods by hand. This research reveals that cross-border small-scale traders from Central Asia are flying back and forth between Korea and their home countries with luggage to overcome high tariffs and long-distance transit via trains or trucks. However, traders can still profit from the use of rail and truck transportation via cargo companies, depending on the situation and items they are handling. Additionally, the unique social relationships that are fostered through face-to-face interactions, enable traders to stabilize transactions, effectively obtain business information, negotiate prices, and reduce the risks associated with inventory by making small purchases. This paper uses the concept of social capital to demonstrate the trading mechanisms and factors that facilitate the continued success of cross-border small-scale trade networks. It offers evidence that the importance of in-person interactions in trade cannot be overlooked.

keywords
Central Asia Street, Cross-border Small-Scale Trade, Social Capital, Garment Trade Network. Social Network, 중앙아시아 거리, 소무역, 대면 거래, 사회적 관계, 사회자본, 의류 소무역 네트워크

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